Really?
And their directive for promoting this is...(you place the answer)
Here is what I mean -- collections is so cost-effective these days, automated and able to be persistent a long time at low low cost, that the banks -- so I think -- figured that they could risk far more -- loan without due diligence, because even a rock can be squeezed for blood, eventually, these days. As long, that is, as the debt wasn't easily marked "BANKRUPT".
I remember the discussions here before the law was passed. Not the details, just the summary. As I recollect the key thing was that creditors with way outscale loan balances for present income would no longer be able to clear the decks, to be freed of all debt. Instead they would be forced into what becomes almost unlimited term indenture, of monthly payments that eat up the bulk of income after taxes. A lot more garnishments too. Quite the foolish way for our generation to treat our future!